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Saudi Arabia secures $13bn for tourism expansion, eyes $85bn revenue boost: minister 

Saudi Arabia secures $13bn for tourism expansion, eyes $85bn revenue boost: minister 
AlUla is widely considered one of the hottest emerging tourist destinations in Saudi Arabia (Supplied)
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Updated 14 March 2024
ARAB NEWS 
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Saudi Arabia secures $13bn for tourism expansion, eyes $85bn revenue boost: minister 

Saudi Arabia secures $13bn for tourism expansion, eyes $85bn revenue boost: minister 
Updated 14 March 2024
ARAB NEWS 
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RIYADH: Saudi Arabia has secured $13 billion in private sector investments for its tourism industry, aiming to distribute the costs involved in becoming a top destination, a minister said. 

According to Princess Haifa Al-Saud, the Kingdom’s vice minister for tourism, the investments are expected to increase the number of hotel rooms by 150,000 to 200,000 within the next two years.  

Saudi Arabia aims to raise tourism revenue to $85 billion this year, up from approximately $66 billion in 2023, Princess Haifa said in an interview with Bloomberg. 

“The current GDP (gross domestic product) contribution is 4.5 percent and we aim to get that to 10 percent by 2030. We started from 3.2 percent when we opened up for tourism,” she said.

Saudi Arabia aims to attract 150 million tourists annually by 2030 as part of Crown Prince Mohammed bin Salman’s economic diversification strategy, which involves shifting revenue streams from oil to sports and technology.

The Kingdom is investing in projects such as Qiddiya and industries including football to attract foreign visitors. It is also the only bidder for the 2034 World Cup.

In 2023, Saudi Arabia welcomed 100 million tourists, the majority of whom were locals. Around 27 million international visitors arrived, many traveling for religious or business reasons.

Due to ongoing building projects, leisure excursions are estimated to account for a small percentage of total travel.

The government plans to recruit $80 billion in private investment in tourism by 2030 and spend $800 billion on the industry in the next decade.

In October 2023, Saudi Arabia’s hospitality sector revised its 2030 target to 150 million visitors, up from the initial 100 million, according to the minister of tourism.

“I think we will close this year with about 100 million (visitors) and almost 6 percent of contribution to gross domestic product, that’s why ... (Crown Prince Mohammed bin Salman) instructed us to revise up our targets to 150 (million visitors),” Al-Khateeb said at the time.

The minister elaborated that out of this new target, an estimated 75 million travelers are expected to be international, with the remaining 75 million domestic.

Topics: tourism saudi tourism

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Oil Updates – crude nudges up after Russia-Ukraine tensions escalate

Oil Updates – crude nudges up after Russia-Ukraine tensions escalate
Updated 22 sec ago
Reuters
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Oil Updates – crude nudges up after Russia-Ukraine tensions escalate

Oil Updates – crude nudges up after Russia-Ukraine tensions escalate
Updated 22 sec ago
Reuters

SINGAPORE: Oil prices edged up on Monday after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China, the world’s second-largest consumer, and forecasts of a global oil surplus weighed on markets.

Brent crude futures gained 29 cents, or 0.4 percent, to $71.33 a barrel by 8:02 a.m. Saudi time, while US West Texas Intermediate crude futures were at $67.20 a barrel, up 18 cents, or 0.3 percent.

Russia unleashed its largest air strike on Ukraine in almost three months on Sunday, causing severe damage to Ukraine’s power system.

In a significant reversal of Washington’s policy in the Ukraine-Russia conflict, President Joe Biden’s administration has allowed Ukraine to use US-made weapons to strike deep into Russia, two US officials and a source familiar with the decision said on Sunday.

There was no immediate response from the Kremlin, which has warned that it would see a move to loosen the limits on Ukraine’s use of US weapons as a major escalation.

“Biden allowing Ukraine to strike Russian forces around Kursk with long-range missiles might see a geopolitical bid come back into oil as it is an escalation of tensions there, in response to North Korean troops entering the fray,” IG markets analyst Tony Sycamore said.

Saul Kavonic, an energy analyst at MST Marquee, said: “So far there has been little impact on Russian oil exports, but if Ukraine were to target more oil infrastructure that could see oil markets elevate further.”

In Russia, at least three refineries have had to halt processing or cut runs due to heavy losses amid export curbs, rising crude prices and high borrowing costs, according to five industry sources.

Brent and WTI slid more than 3 percent last week on weak data from China and after the International Energy Agency forecasted that global oil supply will exceed demand by more than 1 million barrels per day in 2025 even if cuts remain in place from OPEC+.

China’s refinery throughput fell 4.6 percent in October from last year and as the country’s factory output growth slowed last month, government data showed on Friday.

Investors also fretted over the pace and extent of interest rate cuts by the US Federal Reserve that has created uncertainty in global financial markets.

In the US, the number of operating oil rigs fell by one to 478 last week, the lowest since the week to July 19, Baker Hughes data showed.

Topics: oil updates oil prices

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World Defense Show 2026 to showcase record number of Chinese companies in Riyadh

World Defense Show 2026 to showcase record number of Chinese companies in Riyadh
Updated 17 November 2024
Reem Walid
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World Defense Show 2026 to showcase record number of Chinese companies in Riyadh

World Defense Show 2026 to showcase record number of Chinese companies in Riyadh
Updated 17 November 2024
Reem Walid

RIYADH: The third edition of the World Defense Show, scheduled to take place in Riyadh from Feb. 8-12, 2026, has secured a record number of participants, with more than 100 companies from China confirmed to take part.

Notably, the China Pavilion has already filled 88 percent of its exhibition space, making it the second-largest national presence at the event, surpassing even the host nation, Saudi Arabia.

This strong participation underscores the growing global appeal of the show. Since its debut, WDS has seen impressive growth, with exhibition space expanding by 54 percent between 2022 and 2026, more than doubling its size. As of now, over 50 percent of the total floor space for WDS 2026 has already been sold.

The announcement follows the successful conclusion of the second edition of WDS, which hosted 773 exhibitors from 76 countries, facilitated SR 26 billion ($6.9 billion) in deals, and attracted 106,000 trade visits.

“The significant interest and commitment from Chinese exhibitors is a testament to the prominence WDS holds in the global defense space,” said Andrew Pearcey, CEO of World Defense Show.

“Our goal is to bring together global and local stakeholders to advance networking opportunities, strengthen global knowledge-sharing, and shape the future of defense technology,” he said.

The high level of interest from Chinese firms was also evident at the 15th Airshow China in Zhuhai, held from Nov. 12-17. Senior WDS representatives attended the event to engage with potential exhibitors, offering them the opportunity to secure their space at WDS 2026, which is rapidly filling up.

Topics: WDS

Closing Bell: Saudi main index rises to close at 11,811

Closing Bell: Saudi main index rises to close at 11,811
Updated 17 November 2024
REEM WALID 
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Closing Bell: Saudi main index rises to close at 11,811

Closing Bell: Saudi main index rises to close at 11,811
  • Parallel market Nomu gained 9.64 points, or 0.03%, to close at 29,477.35
  • MSCI Tadawul Index also gained 4.49 points, or 0.30%, to close at 1,485.85
Updated 17 November 2024
REEM WALID 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 20.80 points, or 0.18 percent, to close at 11,811.98. 

The total trading turnover of the benchmark index was SR4.22 billion ($1.12 billion), as 115 of the stocks advanced and 116 retreated. 

The Kingdom’s parallel market Nomu gained 9.64 points, or 0.03 percent, to close at 29,477.35, with 41 listed stocks advancing and 41 declining. 

The MSCI Tadawul Index also gained 4.49 points, or 0.30 percent, to close at 1,485.85. 

The best-performing stock of the day was The Mediterranean and Gulf Insurance and Reinsurance Co., whose share price rose 9.96 percent to SR20.98. 

Other top performers included Saudi Reinsurance Co. and Thimar Development Holding Co., with their share prices increasing by 6.89 percent to SR38.80, and 6.04 percent to SR43.90, respectively. 

The share prices of Saudi Cable Co. and The Co. for Cooperative Insurance also surged by 5.39 percent and 5.08 percent to SR97.70 and SR132.40, respectively. 

The worst performer was Arriyadh Development Co., whose share price dropped by 5.27 percent to SR26.05. 

Other notable decliners included Alistithmar AREIC Diversified REIT Fund and Red Sea International Co., whose share prices fell by 3.68 percent to SR9.43, and 3.34 percent to SR66.50, respectively. 

Zamil Industrial Investment Co. and The National Co. for Glass Industries also saw declines, with their share prices falling by 3.33 percent to SR26.15, and 3.14 percent to SR49.40, respectively. 

On the announcements front, Amwaj International Co. disclosed its board of directors’ recommendation to distribute SR6 million in cash dividends to shareholders for the fiscal year ending Dec. 31. 

According to a statement on Tadawul, the dividends will cover 6 million eligible shares, with a payout of SR1 per share, representing 10 percent of the share’s par value. 

Amwaj International Co. concluded the trading session at SR42, marking an impressive 18.57 percent increase. 

Arab Sea Information Systems Co. announced updates regarding its project with the Al-Madinah Region Development Authority for managed IT services. 

The company was notified of the decision to cancel the competition due to procedural violations identified following a grievance by a competitor, according to a filing on Tadawul.

The grievance was filed before the award decision or in opposition to it and the company clarified that no costs are associated with the development. 

Arab Sea Information Systems Co. closed the session at SR7.13, down 0.84 percent. 

Topics: Tadawul Closing Bell Saudi Arabia MSCI Tadawul Index TASI Nomu Saudi Stock Exchange (Tadawul) TASI

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Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY

Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY
Updated 17 November 2024
NADIN HASSAN  
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Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY

Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY
  • UAE and Saudi Arabia were the top investment destinations, accounting for 52% of the region’s total deal volume and 81% of deal value
  • Sovereign wealth funds played a key role in driving M&A activity in the region
Updated 17 November 2024
NADIN HASSAN  

RIYADH: Saudi Arabia and the UAE led Gulf region merger and acquisition activity, which increased 7 percent in value to $71 billion in the first nine months of the year. 

According to EY’s MENA M&A Insights 9M 2024 report, the Middle East and North Africa region saw a total of 522 deals during the period, with deal volume rising 9 percent year on year. 

The value growth was largely fueled by a surge in cross-border transactions and substantial investments from sovereign wealth funds, such as the UAE’s Abu Dhabi Investment Authority and Mubadala, and Saudi Arabia’s Public Investment Fund. 

Brad Watson, EY MENA strategy and transactions leader, said: “Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalization of investment regulations and robust capital inflows from investors.” 

He added: “With companies actively seeking opportunities to grow and diversify their operations, we have observed a surge in cross-border M&A volume and value.” 

The UAE and Saudi Arabia were the top investment destinations, accounting for 52 percent of the region’s total deal volume and 81 percent of deal value, with 239 transactions worth $24.5 billion. Both nations continue to benefit from their favorable business environments and strategic economic policies. 

“In particular, the UAE remained a favored investment destination during the first nine months of 2024 due to its business-friendly regulations and efficient legislative framework,” said Watson. 

Sovereign wealth funds played a key role in driving M&A activity in the region, supporting national economic strategies. These funds were particularly active in sectors aligned with long-term diversification plans, such as technology, energy, and infrastructure. 

Cross-border M&A deals dominated, representing 52 percent of the overall volume and 73 percent of the value, the report added. 

However, domestic M&A activity also saw a notable increase, rising 44 percent year on year to $19.3 billion, driven by government-related entities making significant acquisitions in the oil and gas, metals and mining, and chemicals sectors. 

Insurance and oil and gas emerged as the most attractive sectors, accounting for 34 percent of the total deal value. Technology and consumer products led domestic M&A by volume, with 78 deals representing 31 percent of activity. 

Saudi Arabia recorded the region’s largest domestic transaction, with energy giant Aramco’s $8.9 billion acquisition of a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Sumitomo Chemical. 

The US remained a top target for MENA investors, with 32 deals valued at $18.3 billion. The US-UAE Business Council helped facilitate these partnerships, with prominent US firms collaborating with UAE public and private sectors on various initiatives. 

Outbound and inbound deals 

Outbound M&A was the largest contributor to deal value, with 147 transactions totaling $41.4 billion, led by insurance and real estate investments. The US and China represented 70 percent of outbound deal value. 

Inbound deals also witnessed growth, rising 20 percent in volume and 47 percent in value to $10.4 billion. The US and UK were the leading contributors, driving activity in technology and professional services. 

Mega deals 

Ten of the region’s largest deals were concentrated in the Gulf Cooperation Council. These included Mubadala and partners’ $12.4 billion acquisition of Truist Insurance Holdings and an $8.3 billion investment in Chinese shopping mall operator Zhuhai Wanda Commercial Management Group. 

“Strengthening regional relationships with Asian and European economies, alongside existing ties with the US, enabled MENA countries to gain access to larger and growing markets,” said Watson. 

As Gulf nations continue diversification strategies and prioritize digital transformation, sectors like technology, energy, and infrastructure are expected to drive further M&A growth. Saudi Arabia and the UAE’s proactive policies and substantial sovereign wealth fund activity position the region as a global investment hotspot. 

Topics: Saudi Arabia UAE MENA EY Merger and acquisitions

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Craig Smith explores the media’s role in AI conversations

Craig Smith explores the media’s role in AI conversations
Updated 17 November 2024
Arab News
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Craig Smith explores the media’s role in AI conversations

Craig Smith explores the media’s role in AI conversations
Updated 17 November 2024
Arab News

RIYADH: The media’s primary role is to translate complex ideas into digestible content for the public, said Craig Smith, host of the Eye on AI podcast and a former correspondent.

In a recent conversation with the Saudi Data and Artificial Intelligence Authority’s GAIN podcast, Smith discussed the rapidly evolving field of artificial intelligence and the challenges media faces in accurately covering it amid both excitement and misinformation.

“You can put AI in a robot, but robotics is one field, and AI is another,” Smith explained, stressing the need for more precise portrayals of AI in the media.

As AI discussions have intensified in the past two years, particularly around its potential threats, Smith emphasized that these debates are meant to encourage further research into AI safety and prompt regulation. However, he noted that the popular press often misinterprets the purpose of these discussions, leading to sensational headlines that contribute to widespread fear.

“The purpose of that discussion is to generate more research around the safety of AI and to spur regulation to get the governments looking at what’s happening,” Smith said.

“But the media often misses this goal, resulting in alarmist narratives like AI will ‘kill us all,’ which detracts from the vital work of understanding and regulating this technology.”

While it’s easy to imagine a dystopian future for AI, Smith pointed out the far more nuanced reality. “We’re still working on getting large language models to be truthful and stop spouting nonsense,” he said, illustrating the long and challenging path ahead in developing reliable AI systems.

Reflecting on the rapid pace of change in the field, Smith highlighted the exciting progress in AI research, particularly since the introduction of the transformer algorithm in 2017.

“It was Ilya Sutskever at OpenAI who built a model around the transformer algorithm and scaled it up,” Smith noted, acknowledging the profound impact this algorithm has had on the development of large language models like ChatGPT and Claude.

Smith’s insights underscored the media’s crucial responsibility in accurately covering AI. By bridging the gap between complex technological advancements and public understanding, journalists have the power to foster informed discussions that will ultimately shape the future of AI in society.

Topics: AI Media reporting content GAIN 2024 Eye On AI

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